Let to Buy Interest Tax Relief

Let to Buy Interest Tax Relief

10:23 AM, 29th January 2018, About 4 years ago 11

Text Size

This question is for the tax year 2016-2017. My wife and I did a ‘Let to Buy’ on a flat we owned. At the time, we owed 125,000 to the bank and when we took out our buy to let mortgage we increased the borrowing to 250,000.

£125,000 we used as a deposit on our new home that we live in.

When working out my tax can I claim the full tax relief on Mortgage Interest payment, Mortgage arrangement fee’s, Solicitors fee’s.

Or as half the money was used for the purchase of my home I can only claim half as tax deductible on the items above.

Also going forward will this apply in subsequent years.

Thanks

Matt

Show Book a Tax Planning Consultation

Book a Tax Planning Consultation

  • Hidden
  • Hidden
    Please provide an overview of your circumstances and what you are looking to achieve.
  • Landlord Tax Planning Consultancy is the core business activity of Property118 Limited (in association with Cotswold Barristers).


Comments

by Matthew

15:50 PM, 30th January 2018, About 4 years ago

Thanks for all the prompt help on this topic. I believe I have found an example from HMRC that backs up the great advice to my question.
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45700
Example 2


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER